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The values you computed in Assignment 3 are nominal cash flow values (i.e. not adjusted for inflation). Suppose inflation is expected to be 5% annually
The values you computed in Assignment 3 are nominal cash flow values (i.e. not adjusted for inflation). Suppose inflation is expected to be 5% annually for the foreseeable future. Calculate the real (inflation adjusted) net cash flows for each year. Explain why it is important to express future cash flows in real terms
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur J. Keown, John H. Martin
13th edition
134417216, 978-0134417509, 013441750X, 978-0134417219
